Multiple Choice
Which of the following statement(s) regarding activity-based costing is (are) true? I. Use of activity-based costing improves cost tracing by using more cause-and-effect relationship to assign indirect costs to activity centers.II. An activity-based system is characterized by multiple cost pools and multiple volume and activity cost drivers.III. Activity-based costing can cause distortion of cost, assigning too much cost to some products and too little to others.
A) I and III
B) I and II
C) II and III
D) III only
Correct Answer:
Verified
Correct Answer:
Verified
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